Highlights from the Technical ReportDoubles to over $1 billion at $1,800 gold. We are at $1,800 now and a case could be made for much higer gold prices in the next 12-24 months. Hold on to your shares!
- Exceeded all of our expectations in terms of size, annual production, initial capital costs and financial returns including Net Present Value (NPV) and Internal rate of return (IRR)
- PEA shows robust economics with after-tax NPV (discount rate 5%) of C$598M, internal rate of return (“IRR”) of 32.8% and payback of 2.7 years estimated with gold price of US$1,500 per ounce
- Project highly levered to Gold price (NPV doubles to over $1 billion @ spot price of US$1,800 -Table 5 in NR)
- VDE can sustain profitable mining operations of 200,000 gold ounces per year for a minimum of 10 years (12.5-year initial mine life).
- Overall, attractive margin, with an average of over 230,000 ounces a year in the first eight year, peaking at 283,000 ounces in year seven.
- Tremendous exploration upside, which can enable mine life well beyond 12.5 years outlined by the PEA and many opportunities to further improve upon this study
- Potential for this project to be a leader in environmental and socially responsible mining, with low environmental impact, ore sorting, use of dry stacked tailings and access to green electricity
- Mill capacity of 10,000 tonnes per day (3.65 Mtpa) with average gold recovery of 94.7% - one of the few mills with capacity of 10,000 tpd in the area